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Author: 23YrOldSpecul8tr CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 62  
Subject: How to make the most money with AIG Date: 8/24/2009 9:25 AM
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I am very bullish on AIG. I want to invest $5000 long-ish term on them. Which would provide the largest gains? An option (or multiple options), or just buying the stock? I said the amount so I know about how many options I can buy right now. I feel it will be between $60 and $100 by march. So if I'm looking to make the most money, which move should I make?

5 option contracts ($40strikeJan2011) will cost about $5000- If AIG hits $100 by then, am I right to say $100-$40x100 = $6000 per contract - $1000 original cost = $5000 profit x 5 = $25k

vs.

140 shares @$35 up 286% = $14.3k

Who knows how high it can go. If it is higher by Jan 2011 would it be much better to buy options? Right now, I don't want to say the $5000 is disposable, but I understand the gamble involved with options and am willing to lose it if the returns are much larger.

I just want to make sure I am not mistaken by what I think will happen and how much can be made. All opinions are welcome, but keep in mind that I'm 24 trying to make a lot of money on a risky investment, so don't tell me I should buy some stock that returns 3%, That's what I'll do if I make money here, but I need to make some real money first, then probably buy GE forever.

Thanks
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